CCPC requires binding commitments from BWG to acquire Tuffy’s Wholesale
This follows an investigation to establish whether the proposed acquisition could lead to a substantial lessening of competition for goods or services in the State
The Competition and Consumer Protection Commission (CCPC) has said it requires binding commitments from BWG to acquire Tuffy’s Wholesale.
The CCPC said it has cleared, subject to a number of legally binding commitments, the proposed acquisition by BWG of the entire issued share capital, and thus sole control, of Tuffy Wholesale.
BWG is involved in the wholesale distribution of food and grocery goods to its affiliated stores and to stores operated by independent retailers.
Tuffy Wholesale is an Irish-owned wholesale business and a member of Stonehouse Marketing and Gala Retail. It is engaged in the wholesale distribution of tobacco products, confectionery, soft drinks, alcohol, chilled foods and general grocery products to retail grocery stores, hospitality, schools, universities and hospitals.
The CCPC’s determination follows an investigation to establish whether the proposed acquisition could lead to a substantial lessening of competition for goods or services in the State.
During this investigation, the CCPC identified potential concerns should the proposed acquisition take place. These concerns were that through BWG’s ownership of Tuffy Wholesale, BWG, could potentially obtain access to commercially sensitive information relating to GRSL or Stonehouse. This sharing of such information would constitute a breach of section 4(1) of the Competition Act 2002, as amended.
To address these concerns, BWG proposed a number of binding commitments including that BWG would divest fully, Tuffy Wholesales’ shareholdings in Stonehouse and GRSL. This would prevent the potential for the exchange of commercially sensitive information between BWG, Stonehouse and/or GRSL.
Having considered the commitments given by BWG, the CCPC has determined that the proposed acquisition will not substantially lessen competition and, therefore, the proposed acquisition can be put into effect. The CCPC took the commitment into account in the determination and the commitments form part of the basis of the CCPC’s determination to clear the proposed acquisition, and so are legally binding on BWG.
The CCPC will publish the full determination on its website no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.
Further details of the CCPC’s announcement can be found at M/23/010 – BWG/Tuffy Wholesale – CCPC Business
